Deck 11: Strategic Leadership: Creating a Learning Organization and an Ethical Organization

Question 1

Inappropriate reward systems may cause individuals to commit unethical acts.

Answer 1

True
Explanation:A flaw in an organization reward structure may inadvertently cause individuals to act in an inappropriate manner, if rewards are seen as being distributed on the basis of outcomes, rather than the means by which goals and objectives are achieved.

Question 2

Leaders who fail to institute proper systems and controls that facilitate ethical conduct share responsibility with those who conceive,execute,and knowingly benefit from corporate misdeeds.

Answer 2

True
Explanation:Ethics is as much an organizational as a personal issue. Leaders who fail to provide proper leadership to institute proper systems and controls that facilitate ethical conduct share responsibility with those who conceive, execute, and knowingly benefit from corporate misdeeds.

Question 3

Internal benchmarking is discouraged in most organizations because it creates competition and internal rivalries that are counterproductive.

Answer 3

False
Explanation:An important benefit of the sharing of internal information at Whole Foods becomes the active process of internal benchmarking. Competition is intense at Whole Foods. Teams compete against their own goals for sales, growth, and productivity; they compete against different teams in their stores; and they compete against similar teams at different stores and regions. There is an elaborate system of peer reviews through which teams benchmark each other.

Question 4

Empathy,one of the components of emotional intelligence (EI),refers to personal proficiency in managing relationships and building networks.

Question 5

Leaders must draw on a range of personal skills as well as organizational mechanisms to move their organizations forward in the face of barriers to change.

Question 6

In integrity-based ethics programs,organizational ethics is seen as the responsibility of the employees.

Question 7

Emotional intelligence (EI)is one of the components of a high intelligence quotient (IQ).

Question 8

Codes of conduct help employees from diverse backgrounds to work more effectively across cultural backgrounds.

Question 9

Research supports that there are many potential benefits of an ethical organization,including that there is a strong and consistent relationship between ethical performance and measures of financial performance.

Question 10

A key function of the leaders in a learning organization is to generate an organization-wide commitment to the status quo.

Question 11

Ethical crises are bad for organization reputation,but they rarely have any financial consequences.

Question 12

If leaders do not believe in the ethical standards that they are trying to inspire,they will not be effective as good role models.

Question 13

The tendency of many individuals to invest further in decisions providing positive performance feedback is referred to as escalation.

Question 14

Three key interdependent strategic leadership activities are: designing the organization,determining its direction,and nurturing a culture dedicated to excellence and ethical behavior.

Question 15

A compliance-based approach to ethics management combines a concern for law with an emphasis on managerial responsibility for ethical behavior.

Question 16

There can be a high-integrity organization without high-integrity individuals.

Question 17

Setting a direction is the leadership activity that involves developing a strategic vision of what the organization could become.

Question 18

People with strong self-awareness are overly critical and unrealistically optimistic and are well suited to run organizations because they will make good judgment calls.

Question 19

Inspiring and motivating people with a mission or purpose is a necessary and sufficient condition for developing a learning organization.

Question 20

Behavioral barriers to change occur because of conflicts between departments,conflicts arising from power relationships,and refusal to share information.

Question 21

According to the textbook,________ and ________ must accept personal responsibility for developing and strengthening ethical behavior throughout the organization.

A) bankers, employees
B) employees, external stakeholders
C) managers, top executives
D) managers, stockholders

Question 22

Poor organizational design by leaders can result in all the following except

A) lack of understanding of responsibility and accountability among managers.
B) inadequate or inappropriate budgeting and control systems.
C) reward systems that do not motivate individuals toward desired organizational goals.
D) teams, systems, and organizational processes that facilitate implementation.

Question 23

Expert power is derived from

A) organizationally conferred decision-making authority.
B) manager access, control, and distribution of information that is not freely available to everyone in an organization.
C) referent power.
D) leader capability and knowledge in a particular field.

Question 24

Which of the following statements about leadership is false?

A) Leadership is focused on the creation and implementation of a creative vision.
B) Leadership is the process of transforming organizations from what they are to what the leader would have them become.
C) Leaders work to build a status quo and seek control mechanisms to maintain it.
D) Effective implementation of strategy is essential for successful leadership.

Question 25

A strategic vision provides many benefits.Which of the following is not one of those benefits?

A) a clear future direction
B) a framework for their organization mission and goals
C) enhanced employee communication and commitment
D) the ability to influence the environment of the firm

Question 26

Which of the following does not explain why organizations are prone to inertia and slow to change?

A) personal time constraints
B) political barriers
C) vested interests in the status quo
D) entry barriers

Question 27

When faced with barriers to change,leaders can create a good climate for advancing the aims of the organization and making progress towards its goals by building ________ and ________.

A) a learning organization; an ethical organization
B) a following organization; an ethical organization
C) a learning organization; an efficient organization
D) an efficient organization; a learning organization

Question 28

Which of the following does not constitute organizational bases of leader power?

A) legitimate power
B) reward power
C) referent power
D) coercive power

Question 29

Former GVO marketing director,David Lieberman,tells a story about a new product idea proposed by a creative person.The idea was loved by everyone except a high-ranking manufacturing representative who rejected the idea because the new proposal involved a color change which he implied would create a spare-parts problem.Because his experience in manufacturing involved cost cutting,lean inventories and focus,he could not conceive of how this new product proposal would be good for innovation.This is an example of what kind of organizational barrier?

A) vested interests in the status quo
B) personal time constraints
C) behavioral barrier
D) systemic barrier

Question 30

When Target offered online purchasing of groceries for in-store pick up and then store delivery to customer locations it realized that their supply chain logistics no longer matched with the demands of this new offer.This is an example of what kind of barrier to change?

A) vested interests in the status quo
B) personal time constraints
C) behavioral barrier
D) systemic barrier

Question 31

Refusal to share information,conflicts over resources,conflicts between departments and divisions,and petty interpersonal differences are symptoms of which type of barrier to change?

A) systemic barriers
B) political barriers
C) behavioral barriers
D) entry barriers

Question 32

Effective leadership is like a three-legged stool.Which of the following is not represented by one of the stool legs?

A) maintaining the status quo
B) nurturing a culture dedicated to excellence and ethical behavior
C) setting a direction
D) designing the organization

Question 33

The source of referent power is

A) subordinate identification with the leader.
B) leader identification with the subordinates.
C) derived from the fact that the manager can potentially act as a reference when the employee applies for another job.
D) derived from manager ability to provide effective incentives to employees.

Question 34

________ are obstacles associated with a managerial tendency to look at issues from a biased or limited perspective.

A) Systemic barriers
B) Behavioral barriers
C) Political barriers
D) Barriers to exit

Question 35

Choose the best answer: Leaders play a key role in developing and sustaining organization

A) the status quo.
B) culture.
C) reporting relationships.
D) rules and regulations.

Question 36

Fisk Johnson is the fifth generation CEO of the family firm,SC Johnson.The combination of the ________,its ________,and its story-driven culture reinforce the willingness of the firm to lead the market in environmental awareness.

A) ownership structure of the firm, strong leader
B) listing of fragrances, financial awareness
C) ownership structure of the firm, employee union
D) employee participation, weak leadership

Question 37

Which of the following is an important characteristic of a leader?

A) strives to maintain the status quo
B) goal-oriented
C) reactive
D) focused on past performance

Question 38

The CEO scraps the company commission-based reward system because it rewards employees for inappropriate behavior.This is an example of

A) ethical behavior.
B) designing the organization.
C) unethical behavior.
D) the failure to maintain the status quo.

Question 39

________ are obstacles in which the design of organization structure,information processing,and reporting relationships,impede the proper flow and evaluation of information.

A) Systemic barriers
B) Behavioral barriers
C) Political barriers
D) Barriers to entry

Question 40

Coercive power is the

A) power exercised by use of fear of punishment for errors of omission or commission by employees.
B) power of persuasion exercised by a charismatic leader to get compliance from reluctant subordinates.
C) arises from manager access, control, and distribution of information that is not freely available to everyone in an organization.
D) ability of the leader or manager to confer rewards for positive behaviors or outcomes.

Question 41

According to research,effective leaders at all levels of organizations have high levels of Emotional Intelligence (EI).CEOs with high EI excel in all of the following except

A) managing relationships.
B) influencing people.
C) forging alliances inside and outside the firm.
D) ability to discourage outside stakeholders.

Question 42

Which of the following is not a characteristic of a successful learning organization?

A) It creates a proactive, creative approach to the unknown.
B) It empowers employees at all levels.
C) It regularly engages in activities to reinforce the status quo.
D) It gathers and integrates external information.

Question 43

Former CEO of Check Point Software Technologies,Deborah Triant,says that debating is easy,listening with an open mind is not.She says that the worst thing a leader can do in the decision-making process is to voice an opinion before anyone else can.This is an example of a ________ skill.

A) design
B) organization
C) social
D) motivated

Question 44

All of the following are components of emotional intelligence (EI)except

A) self-awareness.
B) self-regulation.
C) self-promotion.
D) empathy.

Question 45

Inspiring and motivating people with a mission or purpose is a ________ for developing an organization that can learn and adapt.

A) necessary and sufficient condition
B) necessary but not sufficient condition
C) goal but not a necessary condition
D) goal and a required precondition

Question 46

In order to create an environment where employees can achieve their potential as they move the organization towards its goals,the manager role needs to be that of

A) resource allocator.
B) resource controller.
C) a flexible resource.
D) an advocator of the status quo.

Question 47

Functional benchmarking

A) is not very useful for organizations with a divisional organizational structure.
B) is used to determine best practices regardless of industry.
C) restricts the search for best practices to competitors.
D) is useful when researching industry-specific standards.

Question 48

The medical products company,Medtronic,works to restore patients to full life.They have a holiday party that includes patients,their families,and their doctors who share their survival and recovery stories.What purpose does this holiday party serve for the learning organization?

A) It offers patients a break from their problems.
B) It inspires and motivates employees with a real mission and purpose.
C) It empowers the patients.
D) It discourages employees from participating in office gatherings.

Question 49

Which of the following social skills do many executives find challenging to acquire?

A) having empathy for subordinates
B) being a good listener
C) being a good motivator
D) having a large network in place

Question 50

Which of the following is not a part of the three broad sets of capabilities that a leader should possess?

A) technical skills
B) cognitive abilities
C) physical abilities
D) emotional intelligence

Question 51

Which of the following is not a guideline an organization can use to promote the challenging of the status quo?

A) establishing a culture of dissent
B) forcefully creating a sense of urgency
C) fostering a culture that encourages risk taking
D) creating a results-based reward system

Question 52

Which two components of emotional intelligence (EI)deal with the personal ability to manage relationships with others?

A) motivation and self-awareness
B) self-regulation and empathy
C) empathy and social skill
D) motivation and empathy

Question 53

Recognizing opportunities and threats in the external environment is vital to firm success.Complexity and rapid evolution make it critical for employees and managers to become more aware of ________ trends and events.

A) internal
B) outside
C) environmental
D) human resource

Question 54

Which component of emotional intelligence (EI)enables a manager to have a deep understanding of the existence and importance of cultural and ethnic differences?

A) self-awareness
B) empathy
C) social skills
D) self-regulation

Question 55

CEOs who are ________ tend to have a wide circle of acquaintances as well as a knack for finding common ground and building rapport.

A) self-aware
B) self-regulators
C) motivated
D) socially skilled

Question 56

Which of the following is not an aspect of culture that effective learning organization firms need to develop as they redistribute information,knowledge and rewards?

A) encourage employees to offer ideas, ask questions, and express concerns
B) encourage widespread sharing of information from various sources
C) utilize technology that fosters tighter controls
D) encourage collaborative decision-making and the sharing of best practices

Question 57

Leaders who are ________ show a passion for the work itself,such as seeking out creative challenges,a love of learning,and taking pride in a job well done.

A) self-aware
B) self-regulators
C) socially skilled
D) motivated

Question 58

A drawback of EI is that a leader can find it easy to over-identify with others and confuse ________ with ________.

A) intelligence; empathy
B) motivation; empathy
C) empathy; sympathy
D) motivation; intelligence

Question 59

The central key to empowerment in a learning organization is

A) trained employees.
B) effective leadership.
C) sufficient financial resources.
D) rigid structure.

Question 60

Leaders risk creating a culture of fear and micromanagement if they

A) create personal connections with their people through frequent unannounced visits.
B) express their passion frequently.
C) keep their workforce motivated.
D) recognize the opinions of others so that they feel valued.

Question 61

Companies that cultivate cultures of experimentation and curiosity make sure that ________ is not to be avoided at all costs.

A) experimentation
B) failure
C) authority
D) risk taking

Question 62

Which of the following positive relationships is not supported with consistent results?

A) between ethical performance and measures of financial performance
B) between ethical performance and strong organizational culture
C) between ethical performance and increased employee efforts
D) between ethical performance and enhanced social responsibility

Question 63

Effective learning organizations must redistribute ________,________,and ________ in order to assure that there is a common body of knowledge.

A) rewards; training; handbooks
B) training; knowledge; pay raises
C) knowledge; financial rewards; intangible rewards
D) information; knowledge; rewards

Question 64

Empowering individuals by soliciting their input helps an organization to enjoy better employee

A) retention.
B) performance.
C) morale.
D) communication.

Question 65

An ethically sound organization,drawing on the concepts of stakeholder management,can also strengthen its bonds among its ________,________,and ________.

A) policies; procedures; values
B) values; organizational design; employees
C) suppliers; customers; governmental agencies
D) current employees; potential employees; future employees

Question 66

In the compliance-based approach to ethics management,the objective is to

A) conform with externally imposed standards.
B) prevent criminal misconduct.
C) enable responsible conduct.
D) reduce discretion, training, controls, audits, and penalties.

Question 67

Creating an ethical framework and developing organizational capabilities to make it operational is the responsibility of

A) employees.
B) shareholders.
C) the law.
D) leadership.

Question 68

________ is rarely self-sustaining in an organization.

A) High-integrity
B) Integrity
C) Individual integrity
D) Leader integrity

Question 69

Unethical business practices typically involve the ________ cooperation of others and reflect the values,attitudes,and behavior patterns that define the operating culture of the organization.

A) select
B) complete
C) explicit
D) tacit

Question 70

The chance of ethical crises occurring is enhanced if

A) the leader defines the corporate culture.
B) the organization has a weak ethical culture.
C) the shareholders have no confidence in the CEO.
D) employees follow the direction of the leader.

Question 71

Which of the following is not a source for acquiring external environmental information for the firm mentioned in the text?

A) alliance partners
B) equity analysts
C) suppliers
D) scientific community

Question 72

The central key to empowerment is effective leadership.Leading-edge organizations recognize the need for ________,________,and ________ at all levels instead of the extensive and cumbersome rules and regulations inherent in hierarchical control.

A) trust; cultural control; expertise
B) training; finances; expertise
C) respect; finances; trust
D) control, order, finances

Question 73

According to the former CEO of Hanover Insurance,learning organizations require that everyone feels and supports a compelling purpose.What is the most difficult aspect of creating this learning organization?

A) Communicating an image of the future that draws people in and speaks to them
B) Putting systems in place for training
C) Find the resources for the necessary educational training
D) Getting the shareholders to agree with the CEO

Question 74

Which of the following statements about ethics is false?

A) Ethics may be defined as a system of right and wrong.
B) Ethics assists individuals in deciding when an act is moral or immoral.
C) Ethics can be assessed by the legality of an action.
D) Business ethics is the application of ethical standards to commercial enterprises.

Question 75

As a manager,when faced with ethical crises you should

A) focus on issues most relevant to stockholders.
B) wait for the other party to make the first move.
C) take the initiative to address the problem.
D) cover up as much as possible.

Question 76

A strong ethical orientation can have ________ on employee commitment and motivation to excel.

A) mitigating results
B) a positive effect
C) a negative impact
D) an expensive outcome

Question 77

Less than 18 percent of voluntary customer contributions in a recent year went to renewable energy development in the Duke Power of Indiana program called GoGreen Power.This is an example of

A) a benefit of an ethical organization.
B) eco-friendly program development.
C) greenwashing.
D) a successful ethical marketing campaign.

Question 78

In the compliance-based approach to ethics management,the methods used include

A) education, leadership, accountability, decision processes, auditing, and penalties.
B) reduced discretion, training, controls, audits, and penalties.
C) self-governance.
D) conformity with externally imposed standards.

Question 79

In organizations,ethical behavior must start with ________ before ________ can be expected to perform accordingly.

A) the employees; the shareholders
B) the shareholders; the leader
C) the leader; the employees
D) the leader; the shareholders

Question 80

In the integrity-based approach to ethics management,the objective is to

A) conform with externally imposed standards.
B) prevent criminal misconduct.
C) enable responsible conduct.
D) reduce discretion, training, controls, audits, and penalties.